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What is Net 60?

Net 60 gives the customer 60 days to pay — common with large companies and government contracts whose accounts-payable departments move slowly. It strains a small supplier's cash flow, so only offer it when the relationship justifies the wait, or price the delay into your quote.

In practice

A manufacturer ships $40,000 of parts on January 10 with net 60; payment arrives around March 11. The supplier plans payroll around that date because the cash won't land sooner.

Related terms

  • Net 30 — Payment due in full 30 days after the invoice date.
  • Cash flow — The movement of money into and out of the business.
  • Payment terms — The agreed rules for when and how an invoice must be paid.

Protect your cash flow

Clear payment terms and automatic invoice numbering help you track every net-60 invoice to the day.

Create an invoice — free

Frequently asked questions

Why would anyone agree to net 60?

Because the client is big enough to demand it. Landing a major account on net 60 can still be worth it — just plan your cash flow around the wait.

Can I offer a discount to get paid faster than net 60?

Yes — that's exactly what 2/10 net 60 terms do: 2% off if they pay in 10 days. Many AP departments will take it.

How do I survive net 60 as a small business?

Stagger invoice dates, keep a cash reserve, and consider invoice factoring for the occasional gap. Never let one net-60 client become most of your revenue.